LOF refers to a listed open-end fund, which can purchase or redeem fund shares in the OTC market at the same time, and organically link the OTC market with the OTC market through the share transfer custody mechanism. On-exchange trading and off-exchange trading essentially belong to the same fund, so the risks are actually the same. However, since the net value of OTC funds is calculated according to the net asset value of the fund on the day after the close of the daily exchange, the net value of OTC transactions is subject to the day, and the trading price is subject to the on-site transactions. The transaction price is subject to yesterday's fund net value, and the real-time quotation is subject to the relationship between supply and demand. It can be seen that due to the different time, the market transaction price is different from the net price of the fund, and investors have the opportunity to arbitrage. In addition, LOF also increased the on-site trading of open-end funds. The purchased fund shares can be sold at T+ 1, and the sold funds can be used on the same day if they refer to the settlement method of securities trading. T+ 1 can be withdrawn. Compared with over-the-counter trading, buying is earlier than subscription 1 day, and selling is at most 6 days earlier than redemption. The direct effect of reducing transaction cost and accelerating transaction speed is that the fund becomes a buffer pool of funds. For details, please refer to Xue shopkeeper official website.